Shares of Eoptolink Technology Inc.,Ltd. (300502.SZ) experienced significant volatility on July 30, with the stock price falling 16.43% to 352.00 yuan per share by the morning trading close. The session saw a turnover of 24.4 billion yuan and a 5.17% exchange rate.
The company confirmed that its production and operations are proceeding normally, with no major changes in the internal or external business environment and no undisclosed significant matters. The share price decline comes despite strong fundamentals, as the company reported expected net profit of 70 to 80 billion yuan for the first half of 2026, representing a year-on-year increase of 77.56% to 102.93%.
Why the business outlook remains strong
Excluding non-recurring gains and losses, net profit is expected to be between 69.81 billion and 79.81 billion yuan, up 77.46% to 102.88% year-on-year. Non-recurring items accounted for only about 19 million yuan, indicating that the profit growth is driven primarily by core business operations. For the second quarter of 2026, Eoptolink Technology is expected to achieve net profit of 42.2 to 52.2 billion yuan, up 78.1% to 102.3% year-on-year and 51.80% to 87.77% quarter-on-quarter.
The company attributed its first-half performance to the continued global buildout of AI computing infrastructure, strong demand for high-speed optical modules, and a rising share of premium product shipments. Product mix optimization has also contributed to improving profitability.
Accelerating growth in the second half
Looking ahead to the second half of the year, Eoptolink Technology has identified several growth drivers. The 800G optical module remains the company's primary shipping product, while 1.6T optical module shipments have increased significantly from the first quarter to the second quarter. The company expects the pace of 1.6T volume growth to accelerate further in the second half, with sequential increases anticipated. The share of silicon photonics-based products continues to rise, becoming a key pillar of the company's mainstream product portfolio.
On the production and delivery front, Eoptolink Technology operates two major manufacturing bases in Chengdu and Thailand. The company has been expanding capacity based on future order guidance, with capacity planning aligned with market demand expectations for the next two to three years. Order delivery is in a rapid growth phase in the second half, with the industry cycle remaining at a high level. The company expresses confidence in market demand, noting that order visibility for the third and fourth quarters, as well as for 2027, is already clear.
Technological innovation and institutional interest
In terms of product and technology development, Eoptolink Technology is advancing multiple next-generation compute interconnect solutions, including LPO/LRO, XPO, NPO, CPO, and OCS. Based on current market and order conditions, the company sees no change in product demand, with overall market demand expectations remaining robust.
The strong performance and clear growth trajectory have attracted significant attention from institutional investors. Following the release of the first-half performance forecast, the company held a conference call with 417 institutions. Eoptolink Technology management stated that the company will remain focused on its core business, steadily advancing product iteration and capacity expansion, and aiming to deliver stable operational results to shareholders. The company also cautioned that the optical communications industry is influenced by factors such as macro industry cycles, downstream capital expenditure, supply chain conditions, and international trade dynamics, urging investors to make prudent decisions and be aware of investment risks.
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